Priority Bank-OCC Tiff Takes a Twist

by George Waldon  on Monday, Oct. 8, 2012 12:00 am  

Back in our nation's capital, an OCC spokesman said he could neither confirm nor deny the ombudsman action and the change of venue regarding oversight of the dispute.

If a settlement is reached during the next two months, Administrative Law Judge C. Richard Miserendino won't be traveling to Arkansas from the Office of Financial Institution Adjudication in Washington, D.C.

Miserendino was scheduled to preside over the hearing of the OCC-Priority Bank dispute on Dec. 10 at the Sebastian County Courthouse in Fort Smith.

Since 1991, the OFIA is under the umbrella of the U.S. Treasury and is charged with hearing and settling disputes between lenders and the OCC, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corp. and the National Credit Union Administration.

Priority Bank, which has ranked among the state's most profitable in terms of return on equity, recorded a $946,000 profit through June 30.

No Deal

The would-be sale of Decatur State Bank to Mathias Bancshares Inc. of Springdale is no more.

Sam Mathias, owner of his namesake bank holding company, and Larry Olsen, president and chief executive of MBI's First State Bank of Northwest Arkansas, couldn't be reached for comment.

The same goes for Mark Londagin, president and CEO of Decatur State Bank, which has been under regulatory sanction with the Federal Deposit Insurance Corp. for nearly a year.

The $134.2 million-asset bank lost nearly $13 million during 2011 and $3.1 million through the first six months of 2012.

The proposed transaction was positioned to be a sale involving zero consideration.

However, the deal fell to less than zero after the bank's holding company invested an additional $1.1 million to replenish capital to $2.9 million.

 

 

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